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Kasson City council approves tax abatement and $50,000 loan for ‘House of Hoops’ athletic facility
Summary
The Kasson City Council approved a $100,000 pay‑as‑you‑go tax abatement and a separate $50,000 revolving loan to support construction of a proposed House of Hoops athletic facility at 119 West Main, after staff and the EDA outlined project costs, a repayment timeline and conditions including business counseling.
Kasson City Council on Monday approved a $100,000, pay‑as‑you‑go tax abatement and a $50,000 revolving loan to help fund the House of Hoops athletic facility proposed for 119 West Main.
EDA staff Ian told the council the abatement was sized to be recovered within seven years of the first full tax year for the completed project; the developer projects the building will be finished in 2026, making 2028 the first full tax year. The abatement would cover only the city’s share of new tax revenue, capped at $100,000 or seven years, whichever occurs first. Ian also outlined a recommended revolving loan of $50,000 at 5.99% amortized over 10 years, with monthly payments estimated at about $554.85 and repayment scheduled to begin July 2026 under the proposed terms.
Residents and councilmembers questioned employment projections and the difference between a tax abatement and a TIF. Ian said the business expected to create roughly two to three part‑time positions and that this abatement affects only the city portion of taxes, unlike a TIF which typically affects school and county shares.
Councilors debated precedent and fairness; one councilor said they “wish we could not have any tax abatements personally,” while others emphasized downtown vibrancy and the difficulty of redeveloping a brownfield lot. The public hearing on the abatement drew no outside speakers. The motion to approve the tax abatement carried on a voice vote with one councilor recorded in opposition.
Council then considered the EDA’s recommended $50,000 revolving loan. Conditions include completion of business counseling for at least one principal, evidence of full project financing from other lenders, and standard security documentation; staff described the EDA as filling a financing gap rather than serving as the primary lender. The loan was approved by voice vote.
Council members said the city expects the project to modestly increase the tax base and create some part‑time employment; they also noted environmental and site constraints that make development more expensive. Staff highlighted that the EDA had considered and rejected a larger $200,000 request because of limited loan fund availability.
The council’s approvals authorize staff to finalize the abatement agreement and loan documents and to proceed with the conditions specified in the resolutions.
